Compensation And Benefits System At American Express

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Compensation and Benefits System at American Express


In this study we try to explore the concept of “Compensation and Benefits” in a holistic context. The main focus of the research is on “Compensation of Employees” and its relation with “Organizational Performance”. The research also analyzes many aspects of “Compensation and Benefits” and tries to gauge its effect on “Employee Performance”. Finally the research describes various factors which are responsible for “Issues related to Compensation and Benefits” and tries to describe the overall effect of “Employee Performance” on “Organizational Performance”. The report takes in account the compensation system of American Express as a role model and finds out the level to which it has influenced the organization performance.

Compensation and Benefits System at American Express


Compensation is an important factor in the quality of employment, although this is not usually considered most important. It is clear that nonprofits are struggling to overcome in order to offer competitive salaries and benefits to attract and retain skilled personnel. Organizations can - and should - assert their strengths: people are also looking for jobs where they can improve things, challenges interesting and varied, and maintain positive working relationships. However, it is an inescapable fact that compensation has a lot, because it is a factor to which people attach great importance when discussing a post. The HR Council will enhance this section of HR. In this research assignment, we have analyzed the compensation and benefits system at American Express

Pay structure at American Express

American Express, one of the leading corporations in the United States, has designed its pay structure by merging its internal structure with that of market. It has developed a pay line to lead the market as an industry leader. The organization has developed a number of pay ranges and grades to award particular compensation to the individuals on the basis of their performance and effort. The organization tries not to put a cap onto the success of an employee within its structure because everyone is compensated by keeping his/her performance on track.

Benchmarking activities undertaken by American Express

The pay structure at the American Express does follow the traditional design but its pay-for-performance program is the one to be noted here. This provides an incentive of workers in the most complete, intense and productive use of their time. The labor with higher qualification is paid higher than the ones that are unskilled, which interest the workers in professional development, educational level and professional skill. It's all about being result-oriented. The organization seeks a higher level of performance from its employees and pays them accordingly. The benchmark is the performance level of the person, who is exceeding the expectations of the management. The performance-related pay could help in improving an employee's performance (Brown & Armstrong, 1999).

Profit Sharing and Stock ownership Programs at American Express

There was no profit sharing program at American Express until recently when the company shifted its focus and rolled out a new strategy. The company has introduced Long-term Incentive Awards (LTIAs) for its employees ...
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